The electric vehicles company is continuing to be a rising star as its market value exceeded $20 billion in intraday trading on investor optimism regarding the good sales pace.
The stock climbed 1.5% to close at a record $164.22 in New York, after climbing as much as 6.9% to an intraday high of $173. The shares trimmed their gains after Secretary of State John Kerry said the U.S. would hold Syria’s government accountable for using chemical weapons. Tesla’s market value was $19.9 billion at the close of the August 26th transactions. The 10-year-old carmaker, based in Palo Alto, California had its initial public offering in 2010 and its shares this year have surged almost fivefold.
“Tesla’s the Apple of automotive — it’s managed to cross the automotive and technology fields to become this hot commodity,” said Alan Baum, an independent auto analyst at Baum & Associates in West Bloomfield, Michigan. “Justified or not, the expectations for this company are now very high.”
According to an analyst, the rise might be due to the sales performance in California, where Model S ranks as the third-best-selling luxury sedan in the biggest U.S. market, and anticipation of overseas demand – mainly in Europe and China.
Chief Executive Officer Musk, 42, has also said demand for the Model S, priced from about $70,000, outstrips Tesla’s ability to make it. The company plans to deliver 21,000 of its electric sedan flagship this year and double that in 2014.